Bucks and Montgomery County, PA - What is a Tax Levy?

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Services for Real Estate Pros with Trusted Tax Resolution

I represent taxpayers in Bucks and Montogomery county PA with tax issues.  Today, I will briefly discuss one of the most powerful tool's in the IRS' toolbox: Tax Levy.

What is a tax levy?  The IRS using its authority gain possession of a taxpayer's property without going to court.  A tax levy could take cash from your bank account (regular levy) or take your wages or routine paid commissions (continuous levy).

Why does the IRS use tax levies?  A tax levy is designed to get the taxpayer's attention. A tax levy is designed to hurt. 

Can the IRS take my house?   Yes, but only in the most rare, egregious situations.

Can the IRS just levy me without telling me?  No. The IRS is required to make a notice and demand for payment. The IRS will also send via certified mail a Final Notice with Intent to Levy and give the taxpayer 30 days to respond with a right to a hearing.  The challenge is if the taxpayer ignores these notices. 

How do you prevent a tax levy?  (1) Communicate with the IRS. Open your mail from the IRS and do not ignore them.  No one should get levied. If you get levied,  it is because there is breakdown in communication between the IRS and yourself. (2) Get into compliance. What is compliance? Filing your tax returns and being current on your tax estimates. (3) Propose your tax resolution to the IRS. Taxpayers have many options with resolving tax problems: installment agreements (payment plans), Offer-in-Compromises, uncollectible status. Work out an arrangement with the IRS that will stop the tax levy.

Tax Levies are a powerful tool for the IRS. But, no one should ever get levied. There is always plenty of time from the first notice from the IRS to when the tax levy actually occurs. 

If you or someone you know has a tax issue, please call me at 215-316-3437 or email me at steve@trustedtaxresolution.com  for a free consultation. IRS problems do not go away by themselves.

Steven Buonomo CPA

Trusted Tax Resolution

1016 Mill Creek Road

Feasterville, PA 19053

215-316-3437

trustedtaxresolution.com

steve@trustedtaxresolution.com

 

 

 

Comments (1)

Dan Hopper
Dan Hopper - Gold Way RE - Westminster, CO
Denver Broker / Real Estate Advocate

Tax Levies .... not the one thing folks want to have to think about with this pandemic going on ... sure there are those with many concerns about a tax levy, and will keep you busy into the 2021 New Year... Merry Christmas,  !

Dec 24, 2020 09:23 AM